Incentives in support of the agricultural sector in the East African Community (EAC)

Final report Incentives in support of the agricultural sector in the East African Community Kym Anderson Derek Apell Signe Nelgen August 2019 When citing this paper, please use the title and the following reference number: F-32420-RWA-1 Incentives in support of the agricultural sector in the East African Community (EAC) Executive summary Since Burundi, Kenya, Uganda Rwanda and Tanzania ratified th. [...] The welfare benefit measures the impact on household poverty of the reduction of VAT from the consumer price. [...] The rest of this report is organized as follows: the next section gives an overview of the rice, wheat and maize value chains in Rwanda, while section 3 describes the methodology used to address the questions posed above. [...] Household incomes would increase in proportion to the deducted tax, and the relative weight of the commodity in the household’s consumption budget (column 4). [...] As the initial step in calculating NRPs, MAFAP calculates the price gap between the domestic and international price at two points on the commodity value chain: at the wholesale level, where local rice competes with foreign rice for the first time in the domestic market, and at the farm gate level.